The anticipated ‘Brexit effect’ is now being felt in the Dubai property sector, according to a poll of top real-estate agencies by property website propertyfinder.ae.
Although it is still early days after the controversial referendum in June – which saw the United Kingdom vote to withdraw from the European Union – markets have been waiting to see what the larger implications will be.
And according to an early gathering of feedback from propertyfinder.ae’s closest partners, there are already two distinct short term effects being felt in Dubai.
On the one hand it’s good news for those looking to buy in Dubai, as a small but noticeable number of UK owners with property for sale in the emirate have reduced their asking prices – taking advantage of the weak pound against the dollar/dirham.
On the other hand, a number of UK investors that had expressed interest in buying here are now apparently holding back.
“We always keep close tabs on the performance of the local market, so post-Brexit we have been putting out feelers with the leading agencies to see what the mood is – and they have reported these parallel trends, which were to be expected,” commented Lukman Hajje, Chief Commercial Officer at propertyfinder.ae.
“But we would predict that this UK seller/buyer shift is temporary – it is yet to be seen what the true effect of Brexit will be on the Dubai real estate market, indeed we could be in for a few surprises.”
Hajje revealed that propertyfinder.ae had seen an 8 per cent drop in traffic from the UK immediately after the announcement – a “significant figure” – although this has begun picking up again in the last couple of weeks.
Dubai has long been popular among British property buyers with UK citizens emerging as the second largest investors in the emirate’s real estate last year. According to the Dubai Land Department (DLD) they invested a whopping £1.9 billion in 2015.